COOS BAY-NORTH BEND WATER BOARD
2015 TIMBER SALE
approximately 1,244 mmbf
PROSPECTUS
Bid Date: Wednesday, March 25th, 2015; 2:00 pm
Prepared By:
P.O. BOX 118
COOS BAY, OREGON 97420
(541) 267-2872
TIMBER SALE NOTICE AND PROSPECTUS
Coos Bay-North Bend Water Board 2015 Timber Sale
Notice is hereby given that the Coos Bay-North Bend Water Board will receive sealed bids at the offices of Stuntzner Engineering & Forestry, 705 South Fourth Street, Coos Bay, Oregon, 97420, until 2:00 p.m., Wednesday, March 25th, 2015 for the sale of approximately 1,244 MBF of designated timber. The Coos Bay-North Bend Water Board is the designated agent and will be responsible for administering the timber sale through Stuntzner Engineering & Forestry, LLC.
LOCATION
This is a recovery timber sale located on the Pony Creek Watershed in Coos Bay, Oregon, in portions of Sections 28, T.25S. R.13W. W.M., Coos County, Oregon. The designated timber for sale includes all the merchantable timber lying within the timber sale boundary shown on attached Exhibit B.
PRESALE INSPECTION
The gate to the Pony Creek Watershed is kept locked by the Coos Bay-North Bend Water Board. A key to the gate can be picked up at the Water Board office on Ocean Blvd. in Coos Bay, or by calling Ron Hoffine at 541-267-3128 extension 240 to make arrangements for a key to access the unit.
TIMBER VOLUMES AND QUALITY
It is estimated that there are approximately 1,244 MBF, net scale, of timber on the sale meeting minimum standards of the General or Special Scale under the Official Log Scaling and Grading Rules authored by the Northwest Log Rules Advisory Group, as amended to the date of this prospectus, and shall also include "tonnage" pulp wood. The following is a cruise summary by Stuntzner Engineering & Forestry, LLC.
Species Net Merchantable Volume DBH - Ht. 32' Logs
Douglas fir 954 MBF 17 2+
Port Orford-cedar 95 MBF 13 1.5
Western Red Cedar 3 MBF 12 1+
Hemlock 91 MBF 15 1.5
Alder 34 MBF 15 1.5
Spruce 67 MBF 17 1.5
TOTAL 1,244 MBF
The timber and cruise method are described in the attached cruise report along with volume summaries. Additional cruise information can be obtained by contacting Stuntzner Engineering & Forestry, LLC. The Coos Bay-North Bend Water Board and Stuntzner Engineering & Forestry, LLC expressly disclaim any warranties or representations as to the actual quality, quantity, or type of timber or to any site conditions, including logging costs and feasibility. The timber volumes and grades are only estimates and are not to be construed as actual amounts. Prospective bidders should inspect the sale area to determine timber quality, quantity and logging conditions. The timber may not be exported or used a substitution for export timber. The required wildlife trees are in the lake and stream buffers.
CONTRACT
The Coos Bay-North Bend Water Board has prepared a timber sale contract and in the event any offer to purchase is accepted, the Coos Bay-North Bend Water Board will require Buyer to enter into said contract on or before ten days of Board award. The contract contains additional terms of the sale.
Some of the special conditions found in the contract are outlined as follows:
1) Qualification. All bidders must complete, sign and return the attached “Qualification Statement” with their bid deposit and bid form. References of the apparent high bidder will be checked and must be approved prior to awarding the sale. The financial stability of the bidder is addressed in the bonding requirements specified in this prospectus and included in the contract. The experience and performance criteria are addressed by requiring: “the bidder to provide references of satisfactory experience and performance on at least three similarly sized timber sales within the previous three year period.” For each timber sale, list the name and date of the sale, timber volume removed or otherwise an indication of the scope or magnitude of the project, the name and address of the agency or timberland owner, and the name and phone number of the agency or timberland owner contact.
2) Payments. This is a recovery timber sale. A bid deposit of $10,000 shall be submitted with the attached bid form. The Coos Bay-North Bend Water Board will retain this deposit of the successful bidder until successful contract termination. All other bid deposits will be returned to the unsuccessful bidders. The Buyer shall make an additional payment of $40,000 to the Coos Bay-North Bend Water Board upon contract signing. This down payment shall apply as credit toward the final stumpage payment. The bimonthly payments equal the scaled volumes for the payment period multiplied by the contract bid prices and grade.
During harvesting, stumpage payments will be made bimonthly on the 10th and 25th of each month or at other dates mutually agreeable to both parties. Total purchase price is calculated as bid price per thousand board feet or ton, per attached bid form, times the board feet or weight scaled and removed under the contract.
3) Contract Time. All the merchantable timber must be cut by August 1, 2016. The contract shall be fully performed by November 1, 2016. Burning may be extended to accommodate proper site preparation.
4) Taxes. The timber is not subject to the Western Oregon Severance Tax. The Buyer is responsible for paying the Forest Products Harvest Tax levied by ORS 321.005 to 321.185.
5) Bonding. Prior to commencement of any cutting, Buyer will deliver to the Seller a performance bond in the principal sum of $100,000 and a payment bond in the principal sum of $500,000 issued by a responsible bonding company satisfactory to the Seller and in a form satisfactory to the Seller. Such bonds shall cover the performance by Buyer, including payments due for stumpage and other payments.
6) Insurance. Buyer shall carry comprehensive public liability and property damage insurance in the amount of $1,000,000 each, and a separate umbrella policy with a limit of $2,000,000.00 which will provide excess limits. Property damage coverage shall conform to Lloyd's of London Loggers Property Damage Broad Form "B". Buyer shall carry Worker Compensation Insurance in accordance with the Laws of the State of Oregon. Buyer's insurance shall name the, Coos Bay-North Bend Water Board and Stuntzner Engineering & Forestry, LLC as additional insured. Additional insurance requirements are included in the Timber Sale Contract.
7) Reforestation and Site Preparation. The Seller shall be responsible for reforestation. The Buyer will be responsible for site preparation to the Seller's satisfaction. Site preparation will include gross yarding with tops attached. Slash in shovel or ground based yarding areas shall be piled and burned. Landing piles and in-unit piles will be burned or removed for biofuel to the Seller's specifications at Buyer's sole expense.
8) Export of Timber Prohibited. The timber in this sale may not be exported. The Forest Resources Conservation and Shortage Relief Act of 1990, ORS 526.806 and Seller’s policy prohibit the export of unprocessed timber from public lands in Oregon.
9) Access and Road Maintenance. The Seller guarantees access to the timber from the Coos Bay-North Bend Water Board as shown as “Designated Haul Route” on Exhibits "A" and "B". The Buyer shall be responsible for operator road maintenance for normal wear and tear along the designated haul route during the term of the contract. Road maintenance shall include keeping culverts free of debris, applying no less than 250 cubic yards of 1 ½-inch crushed rock and grading the haul route on the completion of log haul. Roads damaged by use other than normal wear and tear shall be repaired at Buyer's expense as directed by Seller.
10) Boundaries. The Coos Bay-North Bend Water Board has marked the sale unit boundary with pink “Timber Harvest Boundary” flagging and "Timber Sale Boundary" signs. The Buyer shall be responsible for trespass outside the marked boundaries.
11) Logging. All operations shall be done in accordance with the Oregon Forest Practices Act. The Buyer shall furnish a written logging plan and attend a prework meeting prior to cutting. The logging plan shall show proposed road locations, landings and yarding methods. Said plan shall be subject to approval by the Coos Bay-North Bend Water Board. Operations may be terminated by the Seller upon its determination that Buyer's operations would cause serious environmental damage to water quality, road systems or soils during wet weather. Equipment exclusion zones are not marked, but include all areas within 30 feet of mapped streams. All merchantable timber must be felled by August 1, 2016 to insure adequate time for curing and a satisfactory burn by the contract completion date.
12) Road Construction. The Buyer shall construct roads according to the standards of the Southwest Oregon timber industry, the Oregon Forest Practices Act and applicable State and Federal requirements. The Buyer shall construct only those roads approved in the logging plan. There are approximately 18 + 53 stations of new road, and 21 + 75 stations of road reconstruction marked with Orange flagging in the sale area.
13) Prevention and Containment of Contaminant Spills. The Buyer will be required to file a written plan and take appropriate prevention measures to insure that any spill of oil, oil products, or other hazardous materials does not enter the waters of the Watershed. Fuel trucks shall enter the watershed only when necessary and shall be parked outside the watershed when not actively fueling or servicing equipment.
14) Sanitation. Unless the Coos Bay-North Bend Water Board authorizes substitute measures or equipment in writing, Buyer will provide the use of approved chemical toilets by all persons engaged in road construction or in logging or removing timber under the contract while they are within the boundaries of the watershed. Such facilities shall be furnished by the Buyer in quantities and at locations agreed to by Coos Bay-North Bend Water Board. No habitation or overnight dwelling by employees of Buyer will be permitted on land within the watershed without advance written approval from the Coos Bay-North Bend Water Board.
15) Municipal Watershed. Pony Creek Watershed is the source of domestic water supplied to customers by the Coos Bay-North Bend Water Board and the Buyer will conform to all laws and regulations pertaining to forest operations in the watershed as outlined in the “General Watershed Protection Rules” dated February 3, 2010.
16) Winter Logging. The Coos Bay-North Bend Water Board may allow winter harvesting so long as the water quality in the watershed and road surfaces are not adversely affected. The Coos Bay-North Bend Water Board reserves the right to suspend operations during periods of weather where operations may damage roads, soils, structures or water quality or quantity. Any costs associated with winter logging such as rocking spur roads, applying maintenance rock to the mainline and additional road maintenance shall be borne by the Buyer. All road costs for winter logging shall be in addition to normal road maintenance costs outlined in paragraph 9 above.
FIELD REPRESENTATIVE
The Coos Bay-North Bend Water Board has designated Stuntzner Engineering & Forestry, LLC to be their field representative. They will serve as field sale contract administrator.
MISCELLANEOUS INFORMATION
Attached are a timber cruise report and cruise summary. Aerial photos, sale location and detailed cruise information can be acquired from:
Stuntzner Engineering & Forestry, LLC
705 South 4th - P.O. Box 118
Coos Bay, OR 97420
Phone: 541-267-2872
BIDS
Bids must be submitted per the attached bid form. The words Coos Bay-North Bend Water Board 2015 Timber Sale should appear on the sealed bid envelope.
All bids shall be accompanied by a certified or cashier's check in the amount of $10,000, payable to the Coos Bay-North Bend Water Board, which, in the case of the successful bidder will be held by the Seller until successful contract completion. All checks for no accepted bids will be returned within ten (10) days to the unsuccessful bidders.
Each bid must be accompanied by a signed and notarized "Certification of Eligibility to Bid on Municipal Timber", attached hereto.
All bids not accepted on or before 2:00 p.m., Wednesday, March 25th, 2015 shall be deemed rejected. Acceptance of a bid may be made by personal notification or deposit of notice in the United States mail with postage prepaid addressed to bidder's address as shown on the bid form, such notice shall be effective upon dispatch.
In the event a successful bidder fails to proceed with the purchase after acceptance of the bid by executing the contract and paying the balance of the down payment as set forth above, the rights of such bidder shall be deemed terminated and the deposit of the bidder shall be forfeited. Consistent with ORS 279, the Water Board reserves the right to waive any and all irregularities in any bids submitted and to reject any or all bids.
BID FORM
Coos Bay-North Bend Water Board 2015 Timber Sale
Sealed Bid Due: On or before Wednesday, March 25th, 2015 at 2:00 p.m.
At the Office of: Stuntzner Engineering and Forestry
705 South Fourth Street.
Coos Bay, Oregon 97420
Phone: 541-267-2872
Following is our bid for the timber described in the 2015 Timber Sale Notice and Prospectus.
Estimated volume Species Bid Price
954 MBF Douglas fir, No. 4 Sawmill
Better, Net Scale $ /M
Incidental Conifer, Special Cull,
Adjusted Gross Scale $ /M
Incidental Conifer, Peelable Cull,
Adjusted Gross Scale $ /M
54 MBF Conifer, Utility Cull, Pulp
Adjusted Gross Scale $ /M
And/or
$ /ton
91 MBF Hemlock, No. 4
Sawmill & Better, Net Scale $ /M
Incidental Grand Fir, No. 4
Sawmill & Better, Net Scale $ /M
67 MBF Spruce No. 4 Sawmill & Better,
Net Scale $ /M
95 MBF Port Orford-cedar No. 4 Sawmill
& Better, Net Scale $ /M
Incidental Maple, No. 4 Sawmill & Better,
Net Scale $ /M
And/or
$ /ton
34 MBF Red alder, No 5 Sawmill & Better $ /M
And/or
$ /ton
Incidental Mixed Hardwood Pulp $ /ton
3 MBF Red cedar, No 4 Sawmill & Better $ /M
Net Scale
All volumes are Scribner Scale. Average conifer log length to be cut feet.
Enclosed herewith is a cashier's check/certified check payable to the COOS BAY-NORTH BEND WATER BOARD in the amount of $10,000. It is our understanding that if we are the apparent successful bidder, we will be notified no later than Friday, April 3rd, 2015 and that upon ten days of Board award, the Timber Sale Contract will be executed.